Elon Musk Sells 75% Of Tesla's Bitcoin: Here's Why?

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Elon Musk Sells 75% Of Tesla’s Bitcoin: Here’s Why?

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(CTN News) – Elon Musk’s Tesla sold off most of its Bitcoin holdings after revealing a major investment in the popular cryptocurrency last year.

Tesla sold 75% of its Bitcoin, valued at about $2 billion (£1.7 billion) at the end of 2021, in its full Q2 2022 financial report. Over 50% of the value of Bitcoin has fallen this year, prompting Elon Musk to pull away from it.

In its report, the company disclosed that it bought traditional currency with $936 million in Bitcoin sales.

Among the most high-profile cryptocurrency promoters, Elon Musk’s cryptic tweets have often fueled significant global trading activity through the microblogging platforms.

Tesla announced in February 2021 that it had invested $1.5 billion in Bitcoin and would accept the cryptocurrency as payment.

Last March, the electric car maker started accepting Bitcoin payments. Tesla reversed the move within 49 days, however, in May 2021.

In its latest quarter report, Tesla reported that the value of its remaining “digital assets” is $218 million, which was previously reported to be around $1.2 billion.

Earlier this year, Tesla CEO Elon Musk told Verge, “I might pump, but I don’t dump… No, I do not believe in getting the price high and selling it. Bitcoin should succeed”.

Elon Musk on Tesla selling Bitcoin

In addition, during an investor call, the billionaire said the crypto selloff should not be interpreted as a verdict on Bitcoin.

The company’s move was a result of concerns about the company’s overall liquidity given the COVID shutdowns in China.

Tesla CEO said, “We haven’t sold any Dogecoin” and termed cryptocurrency a “sideshow”. Tesla’s move reflects the company’s dire need for cash, according to reports.

As Elon Musk revealed in June, the company is “overwhelmingly” concerned about not going bankrupt.

Tesla continues to suffer billions of dollars in losses from its new plants, along with other supply chain problems and COVID-19 lockdowns, in an interview with Tesla owners group.

“The past two years have been a nightmare of supply chain interruptions, one after another,” Elon Musk said, “We’re still in it.” The biggest concern is keeping the factories running so we can pay our workers.”

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